- Solana’s liquid staking protocols hold $187 million in SOL tokens.
- Solana’s value locked in the network reaches approximately $270 million.
- Solana’s native token, SOL, experiences a 60% surge in price.
Solana’s ascent within the cryptocurrency realm is a development that demands close attention. It is particularly noteworthy that, as of the conclusion of June, the collective stake of Solana (SOL) tokens held by prominent liquid staking protocols such as Marinade Finance, Lido, Jito, JPool, and Socean, reached an astonishing $187 million. This surge is particularly significant compared to the beginning of the year when the staked amount stood at $98 million.
The data indicates that the above protocols command a noteworthy 69% share of the overall value locked in the network, estimated to be approximately $270 million. As a result, Solana is witnessing substantial expansion in both adoption and price appreciation, signifying its growing prominence in the crypto industry.
Ripple Effect of Ethereum’s Shapella Upgrade
According to Kevin Peng, a research analyst at The Block, the increasing popularity of Liquid Staking Derivatives (LSDs) within Solana’s ecosystem can be attributed to the growth dynamics of the broader crypto space. Specifically, he highlights the recent Shapella upgrade on Ethereum as a catalyst for the growth of liquid staking. As a result, this trend has also positively impacted Solana.
“In 2023, the category of LSDs has experienced significant growth within the crypto industry, primarily driven by the emerging dynamics of staking on Ethereum. However, there has also been a gradual increase in demand for these products within the Solana ecosystem,” stated Peng, an expert in the crypto industry.
Regarding numerical data, the LSD protocols have witnessed a substantial influx of around 1.66 million SOL, equivalent to a staggering $31 million, throughout the current year. Consequently, these amplified capital inflows have significantly driven the surge in total value locked (TVL) within the liquid staking ecosystem.
Furthermore, Solana’s native token, SOL, has witnessed a remarkable surge of approximately 60% in its price, substantially augmenting the value of SOL deposits in liquid staking.
In the realm of cryptocurrency, Solana (SOL) has experienced a notable surge in the market, reaching a weekly peak of $19.88 in the past 7 days, driven by robust bullish momentum. Currently, SOL’s market capitalization has skyrocketed to an impressive $7,700,763,389, accompanied by a substantial 24-hour trading volume of $320,232,176.
SOL/USD Technical Analysis
Traders in the crypto industry should approach the current surge with caution, as indicated by the latest market technicals. The Chaikin Money Flow (CMF) rating, which evaluates the strength of money flow in and out of an asset, currently stands at 0.23 for SOL/USD. A stochastic RSI reading of 11.13 also suggests an “oversold” condition on the SOL/USD price chart. Therefore, traders must exercise prudence and carefully analyze these indicators before making investment decisions.
The CMF, a crucial indicator in the crypto industry, effectively gauges the intensity of buying and selling activities by integrating price and volume into a single metric. Typically, a positive reading signifies robust buying pressure, whereas a negative value indicates selling pressure. Nevertheless, the current CMF value of 0.23 hints at a potential reversal or deceleration in the ongoing bullish trend.
However, it is worth noting that the stochastic RSI, an oscillator utilized to gauge the extent of a closing price about the high-low range within a designated timeframe, currently registers at 11.13. In cryptocurrency, a reading below 20 is commonly interpreted as “oversold,” suggesting that the asset is potentially undervalued and may experience a subsequent correction shortly.
Solana’s swift adoption and subsequent surge in value, driven by the influx of liquid staking, establish it as a highly promising contender within the cryptocurrency realm.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
